Topic: Important aspects of governance, changes in industrial policy and their effects on industrial growth.
3) What is the potential of India’s MSME sector? Discuss the challenges and concerns associated with the growth of MSME sector in India.(250 words)
Why this question:
The article discusses the findings of the committee set up to undertake a comprehensive review of the micro, small and medium enterprises (MSME) sector, which has submitted its report to the RBI, It has examined issues such as access to finance and infrastructure bottlenecks that continue to plague the sector.
Key demand of the question:
The answer must discuss in detail the potential of the MSME sector and the challenges it is facing in India.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Begin with some statistics/data related to MSMEs in India.
Discussion should include the following:
- What are the issues plaguing the MSME sector? – fiscal indiscipline, lack of infrastructure, Limited capital and knowledge and Non-availability of suitable technology are few critical issues in this sector, Ineffective marketing strategy, Constraints on modernization and expansions and Non-availability of skilled labour at affordable cost.
- Explain the potential it holds in India.
- Then move on to discuss what measures need to be considered? What needs to be done?
Conclude by stating that the only way to create millions of jobs with decent wages is a policy re-imagination of the rights, needs, and treatment of formal MSME entrepreneurs.